Short-term rentals in Middletown Township, explained properly.

Sec. 383-4 prohibits the lease or rental, for any purpose, of any amenity, feature, accessory or appurtenance to or associated with a dwelling, including but not limited to swimming pools, attached or detached garages, accessory structures, cooking facilities and sports courts.

Sec. 383-5 lists this as the permitted use under the article. The article defines a housekeeping unit as a family-type situation of one or more persons living together that exhibits the stability, permanency and functional lifestyle of a traditional family unit, as described in New Jersey Superior Court decisions.

Sec. 383-6 makes it unlawful to advertise by any means any action or failure to act that would violate the short-term rental article. The article defines advertising to cover signs, print media, direct mail, internet websites and text or other electronic messages used to establish occupancies or uses of rental property, for consideration, that the article prohibits, and defines a hosting platform as a website or marketplace that facilitates short-term rentals and earns revenue from doing so.

Sec. 383-7 says violations are subject to the penalty or fine set by Sec. 1-4 of the Township Code (not read for this page, so no amount is stated here). The Construction Official, Zoning Official, Health Department, other subcode or Code Official, including Township legal counsel or other designated persons, enforce the article by issuing municipal civil infractions and appearing in court or filing civil complaints. A violation is declared a public nuisance and a nuisance per se. Any penalty is in addition to other remedies under any other law, including eviction proceedings, injunction, and attorneys' fees and costs, in the Township Municipal Court or the Superior Court of New Jersey.

Sec. 383-1 finds that the Township is authorized by N.J.S.A. 40:52-1(d) and (n) to regulate rented housing and lodging places and the rental of real property for a term of less than 175 consecutive days for residential purposes by a person having a permanent place of residence elsewhere. It states the Township's purposes as limiting turnover and disruptive behavior in residential neighborhoods, minimizing public-safety, noise, trash and parking impacts, and preventing unlawful commercial enterprises in single-family and multifamily dwelling units.

The Division of Taxation page on hotel and motel occupancies says New Jersey imposes sales tax on hotel and motel occupancies at a current rate of 6.625% (page last updated 04/07/26, no effective date shown). The Division's Tax Topic Bulletin S&U-13 (rev. 3/23) says it does not address transient accommodations and points to a separate bulletin on them, which was not read for this layer. The Department of Community Affairs' Local Finance Notice 2026-09 (April 7, 2026) says P.L. 2018, c. 49 and P.L. 2019, c. 235 amended the hotel and motel occupancy fee law to implement sales tax and the State Occupancy Fee on a transient accommodation obtained through a transient space marketplace, or one that is a professionally managed unit. The notice defines a professionally managed unit as a unit that is directly or indirectly owned or controlled by a person offering for rent two or more other units during the calendar year. Because the rate for transient accommodations is not stated on a page that addresses them, this is marked for review. Booking-platform collection is covered in a separate row.

The Division of Taxation's State Occupancy Fee page says the fee is 5% of charges for the rental of hotel and motel rooms that are subject to sales tax, in addition to sales tax and any municipal occupancy tax, and is imposed at a lower rate in cities where hotel and motel occupancies are already subject to a local tax: 1% in Atlantic City, Elizabeth, Newark and Jersey City, and 3.15% in the three Wildwoods. The fee is imposed directly on the occupant and must be shown on the bill as "New Jersey State Occupancy Fee". It is not imposed on an occupancy of at least 90 consecutive days (the permanent resident exemption), on assembly space, or on qualifying government occupants. Bulletin S&U-13 (rev. 3/23) gives the same rates for hotels. The Department of Community Affairs' Local Finance Notice 2026-09 says the State Occupancy Fee applies to transient accommodations obtained through a transient space marketplace or that are professionally managed units; the fee page and bulletin read here describe hotel and motel rooms, so how the rates apply to a short-term rental is marked for review. The fee page was last updated 09/22/25 and shows no effective date for its rates.

The Department of Community Affairs' Local Finance Notice 2026-09 (April 7, 2026) says municipalities that allow short-term rental of transient accommodations are authorized to impose a municipal occupancy tax not to exceed 3% on those transactions, except Newark, Elizabeth, Jersey City, Paterson, Atlantic City, Wildwood, Wildwood Crest and North Wildwood, which are authorized to apply separate hotel or tourism-related statutory taxes to transient accommodation rentals. The notice says the municipal tax applies only to transient accommodations obtained through a transient space marketplace or that are professionally managed units, and that leases of real property with a term of at least 90 consecutive days are not transient accommodations. A new or amended ordinance must be transmitted to the Division of Taxation and does not take effect until 90 days after it is transmitted. The tax must be collected by the person collecting rent from the customer. Tax Topic Bulletin S&U-13 gives the same 3% ceiling and the same list of excluded cities for hotel occupancies. Each municipality's own tax is on its page.

Local Finance Notice 2026-09 (April 7, 2026) of the Department of Community Affairs, Division of Local Government Services, says rental of short-term transient accommodations is largely subject to municipal ordinance and quotes N.J.S.A. 40:52-1(n) as authorizing municipalities to issue licenses for rental of real property "for a term less than 175 consecutive days for residential purposes by a person having a permanent place of residence elsewhere". License amounts are to be adopted by the governing body as part of the municipal fee ordinance. The notice adds that many municipalities have adopted ordinances authorizing and regulating short-term rentals through online marketplaces such as Airbnb and VRBO. The statute itself was not read; its wording is taken from the notice. Each municipality's own rules are on its page.